HM Revenue & Customs

UK to drop pre-consumer recyclate from Plastic Packaging Tax threshold from April 2027

From 1 April 2027, pre-consumer plastic waste will no longer count towards the 30% recycled-content threshold that determines liability under the UK Plastic Packaging Tax; only post-consumer recyclate will qualify. HM Revenue & Customs has also published draft regulations for mass balance accounting of chemically recycled plastic from the same date, subject to third-party certification. A technical consultation opened on 6 October 2026, and detailed guidance is due in early 2027.

Why this mattersManufacturers and importers relying on pre-consumer recyclate to stay under the tax threshold face higher costs unless they switch to post-consumer recycled plastic.

• Pre-consumer plastic waste loses qualifying status for the 30% recycled-content threshold from 1 April 2027.
• Only post-consumer recycled plastic, recovered after use by households and businesses, will count towards the threshold after the change.
• HMRC's technical consultation on the draft regulations launched on 6 October 2026.
• Mass balance accounting for chemically recycled plastic becomes optional from 1 April 2027, requiring third-party certification of the supply chain.
• UK manufacturers using mass balance must be certified; importers must verify supplier certification and retain evidence for six years.
• HMRC plans to publish more detailed guidance on the rules in early 2027.

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